ATR and RSI in price action
I explain in this video how I view the relationship between ATR and RSI in true trend following situations. This is not about trend continuation or harmonics.
This is on the India50 - a 2H time frame. But always one has to look higher to understand the risk and rebellions that may be ahead.
Trading is not about investing. It is primarily about exploiting parts of trends. So you're in and out of the markets, to catch a slice of some trend.
There are bound to be losses. You absolutely cannot make profits without suffering losses.
The business of minimising losses and maximising winning positions - in trend following - has no strict formula. It is about experience in the markets. And each market/instrument has its own personality.
For tend followers taking some or all profits in a deep RSI trench is a good thing. The ATR can show important trend switches.
There are trading platforms that can be programmed to follow the ATR (or any other indicator), in trend following. (House rules do not permit me to mention here). On such platforms one can program a trade to close if price is above or below a certain figure on the RSI.
Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
This is on the India50 - a 2H time frame. But always one has to look higher to understand the risk and rebellions that may be ahead.
Trading is not about investing. It is primarily about exploiting parts of trends. So you're in and out of the markets, to catch a slice of some trend.
There are bound to be losses. You absolutely cannot make profits without suffering losses.
The business of minimising losses and maximising winning positions - in trend following - has no strict formula. It is about experience in the markets. And each market/instrument has its own personality.
For tend followers taking some or all profits in a deep RSI trench is a good thing. The ATR can show important trend switches.
There are trading platforms that can be programmed to follow the ATR (or any other indicator), in trend following. (House rules do not permit me to mention here). On such platforms one can program a trade to close if price is above or below a certain figure on the RSI.
Disclaimer: This is not advice or encouragement to trade securities or any asset class. This is not investment advice. Chart positions shown are not suggestions intended to assure you of an advantage. No predictions and no guarantees are supplied or implied. The author trades mostly trend following set ups which have a low win rate of approximately 40%. Heavy losses can be expected if trading live accounts or investing in any asset class. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
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